By Sam Boughedda
Investing.com -- Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading 4% above Friday's close after Bernstein upgraded the stock from Market Perform to Outperform.
Analyst Stacy Rasgon has a $150 price target on AMD shares. The upgrade marks the first time in nearly 10 years that the analyst has had a bullish rating on the stock.
Rasgon acknowledged in a note to clients that the stock surged while he waited on the sidelines, labeling his previous stance as “the biggest missed call of our Wall Street tenure.”
“But time heals all wounds, and (as has frankly been abundantly clear for years) this is not the AMD of a decade ago," he added.
The analyst pointed to a combination of "continued stellar execution, increasingly bankable earnings power, and a recent sizeable pullback," making the company's valuation attractive.
AMD shares are down nearly 30% from its late November high, "approaching the cheapest in 5 years."
Rasgon explained that "from a fundamental basis, traction continues to accelerate with share climbing and mix improving, and Intel's (NASDAQ:INTC) recent comments suggest open season in datacenter for the next several years."